BILL NUMBER: AB 2051	CHAPTERED  07/24/00

	CHAPTER   188
	FILED WITH SECRETARY OF STATE   JULY 24, 2000
	APPROVED BY GOVERNOR   JULY 21, 2000
	PASSED THE ASSEMBLY   JULY 6, 2000
	PASSED THE SENATE   JUNE 29, 2000
	AMENDED IN SENATE   JUNE 27, 2000
	AMENDED IN SENATE   JUNE 15, 2000
	AMENDED IN SENATE   MAY 25, 2000
	AMENDED IN ASSEMBLY   MARCH 30, 2000

INTRODUCED BY   Assembly Member Robert Pacheco

                        FEBRUARY 22, 2000

   An act to amend Section 9614 of the Commercial Code, relating to
secured transactions.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2051, Robert Pacheco.  Commercial law:  secured transactions.
   Existing commercial law governs security interests in personal
property and fixtures, as well as certain sales of accounts, contract
rights, and chattel paper.  Existing law on and after July 1, 2001,
provides, as to secured transactions, that upon default a secured
party may sell, lease, license, or otherwise dispose of collateral if
specified requirements are met, including providing an authenticated
notification of disposition to designated individuals.  Existing law
on and after July 1, 2001, requires that a notification of
disposition sent after default in a consumer-goods transaction
contain specified information.
   This bill would enact additional provisions relating to the
disposal of collateral by a public sale if the collateral is a motor
vehicle.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 9614 of the Commercial Code is amended to read:

   9614.  In a consumer-goods transaction, the following rules apply:

   (1) A notification of disposition must provide all of the
following information:
   (A) The information specified in subdivision (1) of Section 9613.

   (B) A description of any liability for a deficiency of the person
to which the notification is sent.
   (C) A telephone number from which the amount that must be paid to
the secured party to redeem the collateral under Section 9623 is
available.
   (D) A telephone number or mailing address from which additional
information concerning the disposition and the obligation secured is
available.
   (2) A particular phrasing of the notification is not required.
   (3) The following form of notification, when completed, provides
sufficient information:



_____________________________________________________________________

                    Name and address of secured party)
                  ______________________________________
                                 (Date)

                    NOTICE OF OUR PLAN TO SELL PROPERTY


_____________________________________________________________________

         (Name and address of any obligor who is also a debtor)
  Subject:
____________________________________________________________
                          (Identification of Transaction)
  We have your ___________________________, because you broke
promises
                  (describe collateral)
  in our agreement.

  (For a public disposition:)
  We will sell ______________________________, at public sale.  A
sale
                   (describe collateral)
  could include a lease or license.  The sale will be held as
follows:

    Date: ________________________________

    Time: ________________________________

    Place: _______________________________
  You may attend the sale and bring bidders if you want.

  (For a public disposition pursuant to Section 9614(7)(A) or (7)
(B)):
   We will sell _______________________________________________
                           (describe type of motor vehicle)
   beginning on _______________________________________________
                                     (date)
   by offering it for retail sale or lease to the general public
   through (select the applicable provision:)
   (A) Name of dealer ______________________________________________
       Address of dealer ___________________________________________
   You may inspect the motor vehicle and encourage people to
   purchase or lease it.
   (or)
   (B) Advertising it for sale to the general public to be purchased
       from ________________________________________________________
                        (name of secured creditor)
       at __________________________________________________________
                   (address where vehicle is to be sold)
   You may inspect the motor vehicle and encourage people to purchase

   or lease it.
(For a private disposition:)
  We will sell _____________________________ at private sale sometime

                   (describe collateral)
  after ___________________________________.
                      (date)
  A sale could include a lease or license.

  The money that we get from the sale (after paying our costs) will
  reduce the amount you owe.  If we get less money than you owe,
  you _________________________________________ still owe us the
           (will or will not, as applicable)
  difference.  If we get more money than you owe, you will get the
  extra money, unless we must pay it to someone else.

  You can get the property back at any time before we sell it by
  paying us the full amount you owe (not just the past due payments),

  including our expenses.  To learn the exact amount you must pay,
  call us at _______________________________________________.
                          (telephone number)

  If you want us to explain to you in writing how we have figured
  the amount that you owe us, you may call us
  at ______________________ (or write us at
__________________________)
       (telephone number)                    (secured party's
address)
  and request a written explanation.  (We will charge you $ ____
  for the explanation if we sent you another written explanation of
  the amount you owe us within the last six months.)

  If you need more information about the sale call us
  at _____________________ (or write us at
__________________________).
       (telephone number)                   (secured party's address)


  We are sending this notice to the following other people who
  have an interest in _________________________ or who owe money
under
                        (describe collateral)
  your agreement:
_____________________________________________________
                    (Names of all other debtors and obligors, if any)


   (4) A notification in the form of subdivision (3) is sufficient,
even if additional information appears at the end of the form.
   (5) A notification in the form of subdivision (3) is sufficient,
even if it includes errors in information not required by subdivision
(1), unless the error is misleading with respect to rights arising
under this division.
   (6) If a notification under this section is not in the form of
subdivision (3), law other than this division determines the effect
of including information not required by subdivision (1).
   (7) If the collateral is a motor vehicle, a public disposition
includes, but is not limited to, the following defined categories:
   (A) Retail disposition by a retail seller of motor vehicles who
offers the collateral for sale or lease to the general public in the
same manner as goods that the seller disposes of on the seller's own
behalf.
   (B) Retail disposition made subsequent to advertising in a
publication with a recognized ability to attract retail motor vehicle
buyers and lessees and in a manner designed to reach the retail
buying and leasing public for vehicles of that type and condition.
   (8) For dispositions under subparagraphs (A) and (B) of paragraph
(7), the secured creditor shall ensure that the consumer has
reasonable access to the motor vehicle in question in order to be
able to exercise the right to inspect the motor vehicle.
   (9)  Nothing in this section shall be construed to alter or
disturb any right to inspect a consumer good prior to sale under
existing law.
  SEC. 2.  Nothing in this act shall be construed to alter or disturb
the holding in Bank of America v. Lallana (1998) 19 Cal.4th 203.
This act does not define "public" and "private" sales and
dispositions in general, but describes a limited subset of "public"
sales and dispositions when the consumer goods collateral is a motor
vehicle and provides a specific form of notice solely for those
sales.
   Nothing in this act shall be construed to alter or disturb any
applicable requirements contained in the Rees-Levering Automobile
Sales Finance Act (Chapter 2B (commencing with Section 2981) of Title
14 of Part 4 of Division 3 of the Civil Code.
